A fixed spread refers to the difference between the buying and selling price of a financial asset that remains constant, regardless of market conditions. This means that traders know exactly what their costs will be when entering or exiting a trade, which can help in planning and managing risk. Fixed spreads are commonly offered by brokers in the forex market. Unlike variable spreads, which can change based on market volatility, fixed spreads provide predictability. This can be particularly beneficial during times of high market activity, as traders are not surprised by sudden changes in costs. Many traders prefer fixed spreads for their stability and ease of budgeting.